Canadian rare earth miner Ucore wins big with SB99 approval

Canadian rare earth miner Ucore Rare Metals (CVE:UCU) is a step closer to see its flagship Bokan-Dotson Ridge project in Alaska become a reality as the State Legislature has unanimously passed the Senate Bill 99 (SB99). This authorizes the Alaska Industrial Development and Export Authority (AIDEA) to issue up to $145 million in bonds to finance Ucore's proposed mine.

The SB99 bill, unanimously passed by the Senate, represents a major win for Halifax-based Ucore Rare Metals a development-phase mining company focusing on Bokan Mountain, its flagship property located 60 kilometres southwest of Ketchikan, Alaska and 140 kilometres northwest of Prince Rupert, B.C.

Ucore shares rose 3 per cent to 34 cents on Tuesday, leaving the company with a market cap of $67 million, based on 197.4 million shares outstanding.

“We’re very pleased with the outstanding support that the Bokan Project has received from the Alaska State Legislature,” said Jim McKenzie, president and CEO of Ucore said in a statement Monday. "Alaska legislators have recognized that the area has the potential to be America’s leading heavy rare earth production hub, with an array of ancillary industries, such as REE separation and metal manufacture. "

Bokan Moutain contains a significantly high ratio of heavy rare earths including dysprosium, terbium and yttrium, used in high-tech applications from smartphones to missile systems.

All SB99 requires now is signing into law.

Ucore hopes to begin commercial rare earth metal production in 2017.

*Correction: "Ucore shares rose 3 per cent to 34 cents on Tuesday, leaving the company with a market cap of $67 million, based on 197.4 million shares outstanding." has been changed from yesterday's article.